RDIF and Siemens invest in the development of Russian railway transport
Press release, 15.02.2019
Munich, February 15, 2019 – The Russian Direct Investment Fund (RDIF), Russia’s sovereign wealth fund, Siemens Mobility, a division of the German company Siemens AG which produces railway equipment and trains, representing the German Initiative for High Speed Transportation in Russia, together with the Economic Partnership Ural High-Speed Rail have agreed on a joint project to construct the Ural High-Speed Rail. The agreement was signed today on the sidelines of the Munich Security Conference.
The total investment in the project will exceed 300 billion rubles. The funds will be used to construct a new double-track high-speed railway between the cities of Chelyabinsk and Yekaterinburg. The 220km long rail link would allow trains to travel at speeds of 300 km/h.
The project will be implemented within the framework of a concession agreement and will also include the construction of related infrastructure. This will include four railway stations (Balandino and Koltsovo airports, Snezhinsk and Sysert), 10 intermediate stations and station complexes, four traction substations, a depot for high-speed rolling stock and a control building for the rail link.
Construction of the railway line will begin in 2021 with commissioning scheduled for 2025.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), noted:
“RDIF is one of Russia’s largest investors in the equity capital of infrastructure projects being recently implemented. Infrastructure investments account for more than 40% of the Fund’s portfolio, and we plan to continue to invest in this sector. The project to build a high-speed railway linking Yekaterinburg and Chelyabinsk, each with a population of more than one million, is of strategic importance not only for these regions, but also for the whole country. It will help create the third largest urban area in Russia with a population of four million people.”
Sergey Brevnov, CEO of the Economic Partnership Ural High-Speed Rail, said:
“The formation of a consortium of partners is one of the key priorities in the preparation of the project to construct a high-speed railway between Chelyabinsk and Yekaterinburg. Partnership with the Russia’s sovereign wealth fund and one of the world's technological leaders is a significant strengthening of the status and capabilities of the project. Considering the approving resolution of Russia’s Prime Minister Dmitry Medvedev on the appeal of the governors of Chelyabinsk and Sverdlovsk regions Boris Dubrovsky and Yevgeny Kuyvashev, we expect the project to be included in the Comprehensive Plan for the Modernization and Development of Mainline Infrastructure until 2024, as well as the completion of negotiations on concession terms and conditions, signing the concession agreement and launching the design”.
Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Currently, RDIF has experience of the successful joint implementation of more than 70 projects with foreign partners totaling more than 1.4 trillion rubles and covering 95% of the regions of the Russian Federation. RDIF portfolio companies employ more than 700,000 people, and generate revenues which equate to more than 5% of Russia’s GDP. RDIF established joint strategic partnerships with leading international co-investors from more than 15 countries that total more than 40 billion dollars. Further information can be found at www.rdif.ru
Special purpose company – Economic Partnership “Ural High-Speed Rail” (EP “UHSR”) was established in March 2016. The main goal of the activity of the EP «UHSR» is the preparation of the Ural HSR Chelyabinsk – Ekaterinburg Project for implementation based on the principles of a public-private partnership, search and raising of funds for the implementation of the Project, entry into a concession agreement by way of a private initiative and further execution thereof.
As part of the Project preparation the EP «UHSR» is responsible for the formulation of a strategic, marketing, technical, economic and legal environment for the implementation of the Project, for the development of the documentation involving thereof, and for ensuring the events of interest necessary and sufficient for the implementation of the Project, including raising of funds and handling of the formalities related to mutual relations between the public partner and the private investor.
The amount of EP “UHSR” joint capital is 320 mln rubles. At the present time EP “UHSR” consists of six participants: Chelyabinsk region, Development Corporation of Middle Ural (established by Sverdlovsk region), RWM Capital Investment Group, Chelyabinsk Pipe-Rolling Plant, Russian Copper Company and Magnitogorsk Iron & Steel Works.
For additional information contact:
Russian Direct Investment Fund
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
Andrew Leach / Maria Shiryaevskaya
Tel: +44 (0) 20 7796 4133